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Texas - Wage Payment Laws - Employment Law Handbook

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Frequency of Wage Payments

An employer must pay wages to each employee who is not exempt from the overtime pay at least twice per month (semi-monthly). If wages are paid twice a month, each pay period must consist as nearly as possible of an equal number of days. An employer must pay an employee exempt from overtime at least once per month. Texas Labor Code 61.011 An employer must designate paydays. If an employer fails to designate paydays, the employer's paydays are the first and 15th day of each month. An employer must post, in conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code 61.012 An employer must pay an employee who is not paid on a payday for any reason, including the employee's absence on a payday, on another regular business day on the employee's request. Texas Labor Code 61.013  
   

Manner of Wage Payments

An employer may pay wages to an employee by:
  • cash
  • check redeemable on demand at full face value without deduction or fee; or
  • direct deposit if the employer:
    • notifies each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and
    • obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer.
An employee may agree in writing to receive part or all of the wages in kind or in another form. Texas Labor Code 61.016; Texas Labor Code 61.017
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Direct Deposit

An employer may pay an employee by direct deposit if the employer:
  • notifies each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and
  • obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer.
Texas Labor Code 61.016; Texas Labor Code 61.017
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Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

An employer must pay an employee who is discharged or laid off all wages due within six days after the date the employee is discharged. Texas Labor Code 61.014

Employees who quits, is laid off, or resigns due to a labor dispute (strike)

An employer must pay an employee who quits or leaves employment for any reason other than discharge all wages due not later than the next regularly scheduled payday. Texas Labor Code 61.014
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Wages in Dispute

Texas does not have any laws requiring an employer to pay an employee wages conceded to be due when involved in a wage dispute with the employee.
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Deductions from Wages

An employer may not withhold or divert any part of an employee's wages unless the employer:
  • is ordered to do so by a court of competent jurisdiction;
  • is authorized to do so by state or federal law; or
  • has written authorization from the employee to deduct part of the wages for a lawful purpose.
An employer may withhold the following items from wages only if the employee has consented to it in writing:
  • cash shortages
  • breakage, damage, or loss of the employer's property
  • required uniforms
  • required tools or other items necessary for employment
  • loans (TX Admin Code 821.27)
TX Labor Code 61.018 An employee's written authorization for deductions must be specific as to the purpose for which the employee has accepted the responsibility or liability. Written authorizations must be:
  • sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and
  • a clear indication that the deduction is to be withheld from wages.
If an employer uses a handbook, policy manual or other similar document instead of a separate writing, the employee's signed acknowledgment of receipt of company policies can be authorization to withhold wages if the acknowledgment meets the consent requirements listed above. The signed acknowledgment of receipt must also include language that states that the employee agrees to abide by or be bound to the authorization for deduction. TX Admin Code 40.20.821.28
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Uniforms, Tools, and Other Equipment Necessary for Employment

Texas does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.
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Pre-hire Medical, Physical, or Drug Tests

Texas does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.
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Notice of Wage Reduction

Texas does not have any laws addressing when or how an employer may reduce an employee's wages or whether an employer must provide employees notice prior to instituting a wage reduction.
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Statement of Wages (Pay Stub)

At the end of each pay period, an employer must give each employee a written earnings statement covering the pay period. The statement must be signed by the employer and must show:
  • the name of the employee;
  • the rate of pay;
  • the total amount of pay earned by the employee during the pay period;
  • any deduction made from the employee's pay and the purpose of the deduction;
  • the amount of pay after all deductions are made; and
  • the total number of:
    • hours worked by the employee if the employee's pay is computed by the hour; or
    • units produced by the employee during the pay period if the employee's pay is computed on a piece rate
Texas Labor Code 62.003
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Record Keeping Requirements

Texas does not have any laws requiring an employer to keep any employment-related documents. Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least 3 years. For more information, visit FLSA.
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Notice Requirements

An employer must post, in conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code 61.012
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Frequency of Wage Payments

An employer must pay wages to each employee who is not exempt from the overtime pay at least twice per month (semi-monthly). If wages are paid twice a month, each pay period must consist as nearly as possible of an equal number of days. An employer must pay an employee exempt from overtime at least once per month. Texas Labor Code 61.011

An employer must designate paydays. If an employer fails to designate paydays, the employer’s paydays are the first and 15th day of each month. An employer must post, in conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code 61.012

An employer must pay an employee who is not paid on a payday for any reason, including the employee’s absence on a payday, on another regular business day on the employee’s request. Texas Labor Code 61.013
 


 

 

Manner of Wage Payments

An employer may pay wages to an employee by:

  • cash
  • check redeemable on demand at full face value without deduction or fee; or
  • direct deposit if the employer:
    • notifies each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and
    • obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer.

An employee may agree in writing to receive part or all of the wages in kind or in another form.
Texas Labor Code 61.016; Texas Labor Code 61.017
 

 

Direct Deposit

An employer may pay an employee by direct deposit if the employer:

  • notifies each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and
  • obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer.

Texas Labor Code 61.016; Texas Labor Code 61.017


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Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

An employer must pay an employee who is discharged or laid off all wages due within six days after the date the employee is discharged. Texas Labor Code 61.014

Employees who quits, is laid off, or resigns due to a labor dispute (strike)

An employer must pay an employee who quits or leaves employment for any reason other than discharge all wages due not later than the next regularly scheduled payday. Texas Labor Code 61.014


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Wages in Dispute

Texas does not have any laws requiring an employer to pay an employee wages conceded to be due when involved in a wage dispute with the employee.


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Deductions from Wages

An employer may not withhold or divert any part of an employee’s wages unless
the employer:

  • is ordered to do so by a court of competent jurisdiction;
  • is authorized to do so by state or federal law; or
  • has written authorization from the employee to deduct part of the wages for a lawful purpose.

An employer may withhold the following items from wages only if the employee has consented to it in writing:

  • cash shortages
  • breakage, damage, or loss of the employer’s property
  • required uniforms
  • required tools or other items necessary for employment
  • loans (TX Admin Code 821.27)

TX Labor Code 61.018

An employee’s written authorization for deductions must be specific as to the purpose for which the employee has accepted the responsibility or liability. Written authorizations must be:

  • sufficient to give the employee a reasonable expectation of the amount to be withheld from pay; and
  • a clear indication that the deduction is to be withheld from wages.

If an employer uses a handbook, policy manual or other similar document instead of a separate writing, the employee’s signed acknowledgment of receipt of company policies can be authorization to withhold wages if the acknowledgment meets the consent requirements listed above. The signed acknowledgment of receipt must also include language that states that the employee agrees to abide by or be bound to the authorization for deduction.
TX Admin Code 40.20.821.28


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Uniforms, Tools, and Other Equipment Necessary for Employment

Texas does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.


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Pre-hire Medical, Physical, or Drug Tests

Texas does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.


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Notice of Wage Reduction

Texas does not have any laws addressing when or how an employer may reduce an employee’s wages or whether an employer must provide employees notice prior to instituting a wage reduction.


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Statement of Wages (Pay Stub)

At the end of each pay period, an employer must give each employee a written earnings statement covering the pay period. The statement must be signed by the employer and must show:

  • the name of the employee;
  • the rate of pay;
  • the total amount of pay earned by the employee during the pay period;
  • any deduction made from the employee’s pay and the purpose of the deduction;
  • the amount of pay after all deductions are made; and
  • the total number of:
    • hours worked by the employee if the employee’s pay is computed by the hour; or
    • units produced by the employee during the pay period if the employee’s pay is computed on a piece rate

Texas Labor Code 62.003


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Record Keeping Requirements

Texas does not have any laws requiring an employer to keep any employment-related documents.

Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least 3 years. For more information, visit FLSA.


Back To Top

Notice Requirements

An employer must post, in conspicuous places in the workplace, notices indicating the paydays. Texas Labor Code 61.012


Back To Top